Nike, Inc. located in case 20. Organizational Chart
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Nike cloes not rnake its organizational chart ltLrblic but likely a division-by-product or division-by-region type strLrctulc would work rvell sincc the colnl)any reports revcnLtes ancl operatirtg protits both by procluct (fbotwear,
apparcl, ancl equipmcnt) ancl by rcgion (North Anrcrica, Westcrn Europe, Cliitta, and Japan). However, the
cxisting executive titles do not nratch u,cll with eitltcr of these reportable segtnent scenitrios.
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z' *rt"**x,. \lr ;rl.c 1: i r' : " Nikc has built a1 crnpirc basccl on prorluct rlcvclopurent lbllowecl by heavy utarkctittg. Nikc ollcrs proclrtcts irr
rn6s1 ltajor sports playecl u,orlclu,icle and hircs prolessionitl athletes to t'ttarket their prtlcltrcts, even sigrling l\4ichael Jordan. LcBrun.lanres. ancl Cristiano Ilonalclo to lif'etinre endorsenreltt colltracts. Nike has paiclJortlatl
ovcr $475 million in cnckrrscrrcnts ancl the tlcitls rvith.lames and Ronaldo arc valtled ets tlluch as $l billiorl. Thc $l billion nnntbcr ntay sccll high, lrut estinrates are llonalclo's socierl Ineclia prcseltce alone generatecl $475 ltillion in value lor Nike in 201(r. Anothcr strrtly conchrclcd that Ronalclo gencrates around $175 lnillitln lilr his spopsors apnually, rvhich is sevcn tinrcs lr,hat Stephen Curry, the second top-revetttte getterating athlete 1br
sponsors. Basecl on clatu in 201(r, of the l5 top athlete enclorsement dcals, Nike owns 11, lvith rival Adiclas rc'spgr.rsible fbr 3, ancl Li Nian accounting firr one with their relationshipr with Dwayne Wacle. Nikc also has clcals with ntany prollssional tean-rs arouncl the u,orlcl 1o be thc sole supplierol'their unilorrns.
Nike gscs social meclia hcavily. cspecially rvith thc NikcPlus rncmbership, which is li'ee. Nike oflers trvcr
applications that inclucle Nil<e Ilrrn (llrrb anrl Nil<e l'raining Club rtsecl ott rttobilc devices ancl Apple Watch. wlicreby sscrs can track rhcir progrcss throuirh running or cr'oss trainirtg progralns. Nike hzrs a partnership rvith
Apple wherc the Nikc ltrgo appears on selcct Applc u,atclres. Nike bencflts by trackiug totls of clata on rvorkottts
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Iront users across the lr,orlcl. In aclclition to using the apps lbr lice, custonlers earn Nike Fuel points rvhereby they can purcliase iterns at rliscounts on Nil<c's rvcbsitc and cvert purchase products not yet available to the public in st0res.
Nil<e recently introclucecl thc Air Tech C'hallcnge, a strategy rvhereby thc cotnpany offers tettnis sltocs rvitlt synthetic leather, stabilizers. ancl better hccl cushiuning, all in a Iightcr shoe. Twt'r ncw running shoes clcvelopctl by Nike erre Frec Ftyknit and Frcc Ilypcrlccl.'Ihe llrm also has a new pair of self'-lacing shoes callecl thc IlyperAclapt 1.0.
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Nike proclLrces 97 percent ol'its ltroducts throLrgh contractors iu overseas tnarkets, with Vietnatn, Clhina, and Indoncsia accounting lirr44,29, and 2l percent, respectively. In total, 127 firotwear thctories in l5 diflerent nations supply Nikc, with no sirrgle lactory rcsponsible lbr more than 8 percent ol-total fbotwear sales. Nike is supplied by ovcr 3 69 apparc I luctorics in 3 7 d iltcre nt countries, w ith the largest suppliel accottt.tting fbr I 3 pcrcent olrevenues. Likc shoe procluction, virtLrally all Nike apparel is tnanulactLrrecl or"rtside the Unitecl States with China, Vietnanr, ancl l'hailancl as the threc largest supplicrs of apl"rarel.
\\1ith the Trurnp achrinistratior-r's incentives to reshore rnanufitcturing back to the United States, Nike has announced plans to bLrilrl aclclitional nlrrrulircturing plants iu Atrericit. Presently, the contpatry has [l rnanufacturing fitcilities in thc Uniterl States, uccountir-tg fbr about 8 percent of the cornpatty's total n'ranu(acturiug or-rtput. Nike is vcry transparcnt about its nranufitctLrring ol'fbotwear, etpparel, attd eqLtiprnent. Sirnpty click on thc u,ebsitc http://nranulircturingrnap.nikcinc.com/# to see the cornpany's t-nanttthcturing I aci I itics worldlvide by coLurtry.
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Nikc's Iiscal year encls on.lune 30. Nikc hatl an cxcellent liscal 2017 with reveltucs Ltp 6 percetrt artd net itrcotl-tc Lrp ncarly l3 percent as inclicatccl in l rlrrl,rt -'. Ilowever, Nike rcceived a tax beneflt in 2017 or either t'educecl a lax br.rrden liorn 201(r, helping to partially explain the largeriuurp in ttet incotrte than itt revellLtes. Nike's o\/crseas revenues and profits arc increusing nicely, tlut its North Anterican flnancial resttlts revealed in the contpany's scgment clata arc problcntatir'.
Exhibit 2 Niki;'s; li1r.t;tl ,, :iliilli:t:tt,tttii, irrrJilliiiilll:; llllt))
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t:.'.liii:ir -l reveals a stronq Iralancre shcct lirr Nike lvith relatively little goodlvill or intangiblt:s and il ctll'rcnt ritti() aroLlnd 3.0. Despitc increasing ltet incor)le try $500 nrillion in flscal 2017 to $4.2 billion, ltotice on l:rlril:it i that Nikc's retained cantiltgs ch'oppcrl4 pcrccnt in 2017, cxplaincd partly thrtttrgh $l.l billion in dividencl payt'nct.tts, but also by an anontaly callccl "tlct'crrctl conrpcnsation" revealecl on thc colttpany's cash flow statetncllt. It is vcry uuusual lorany contl)auy to huve sollc Alrount o['nct incottte, pay less in clivitlends than that net inctlttle, ancl then have its retail"le(l cantiltgs to tlccrcase olt tllc balance sheet.
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Ilcipg very transpitrent, Nikc rcports rcvcnLrcs in scvctal dil'l'crent categories.'l-he two principle briittcls or.vnccl by Nikc arc Nike and Convcrsc; Convclsc itccounts for only 6 percent of rcventtes. Merl aocoLlllt fbr abotlt 57 pcrccnt of Nike revcltucs, lollowccl by rvonrcn lvitlr 26 percent, and kids accottt-tt lbr l7 percetlt ol-revcltues^ l{evelues fiorn all lhree gruul'rs are grou,ing around -5 pcrcent annually.'l'hree of Nikc's tttlt-reverluc generating
brancls inclucling spclrtslvcar, running, ancl tlrc Jordan brand accotutt fbr 30, 19, and ll percent olrevct'tue, rospectively. Sportswear cnioyerl a l4 percent revenut: gain in 2017 and tlte Jorclatt l'rrancl enj<lyecl a l3 percent ilcrease in revenues tl'ont 2016. both conting ol'f-cloLrble-digit revenue growth the prior year as rvel[. The lou'cst
revcnrre generating brancls iltclutlc Nike llasketball ancl Wott'tcrt's Training, each representing 4 percent tlf
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rcveltues, fbllor,ved by Action Sports and Ciolt. caol) rcprcsenting 2 perccnt of revenues. The three lolest revenue-generating brancls cliscussecl ubor,c all cxperienced dcclining reventte in 2017, with golf's reventles lulling ltl percent, anclthe other three lrrancls rnentioneclrevenrres falling between 6 attcl 9 percent. Ilach of the Ibur worse psrforming arcas sull'ere(l r'0\,0nLre drops liorn 2015 t0 2016 as rvell, lvith goll'reporting another l8 pcrccnt reveltLte clrop rlurirrg this tinre pcriorl. Moving foru,arcl, it r,vill be ilnportattt firr Nike to decicle horv to irllocatc resourccs ilcross lhcsc ltrttclttct lilte s.
Nikc is in the retail busincss, Itaving lirrrvartl intcgraterl over the years. Nike operatcs 384 lirctory sttlres in the tJnitccl States and 75lJ lirctory storcs or.rtsiclc thc U.S. l:xlril:it-l reveals rcveltLles ancl IrBl'l'fbr Nike (not including Conversc) in 2017. ('irnatla accountecl ftrr 54 pct'cettt of all revetrue in 2017. China gerterated the rnost I:lllT per clollar of rcvcnuc rcccivccl, tbllorvcd by North Amcrica. Central & Ilasterrt lluropc, tbllolvecl by Western E,urope, gencratc signilicantly lorvcr EBIT 1or every dollar olrevenue, cotlparecl to tttlter parts ol-the worlcl. Both regions in Ilurope also sullercrl lronr a l6 percent clrop in their rcspective IIBIT corltribtttiorl fbr 2017.1::xhibii.1 reveals thirt Nike revcnucs in all nrarkets in llscal 2017 experiencecl a nct positive rcvetlLte cltangc in 2017 witlt Ja;ran anclChina erperiencing l7 and l2 pcrcent revenue growths attclNorth Attterica only grorving revenue by 3 percent.
I.,xhibit 4 l.iik*'s \lVr;rlr j.,vlri': llrr*irirlt,,r,,rriri r i,tl | (irt rrilllrilirs Ulil))
North America $15,216 $3,875
Western Europe $6,211 $1,203
China $4,237 $1,507
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$1,487 $244
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$1,014 $224
$32,160 $7,869
I ,;ltilrit i revcals Nike 's rcvcnllcs by procluct typc. Footwcar is firr and an,ay the largcst revelllle-getrerattng scgntent of Nikc, rcprcsenting (16 pcrccnt ol'2017 sales. Iloth lbotwear and apparel salcs werc ttp 6 pcrcetlt irt 2011. but cclLriprnent salcs u,ere cktwn 5 pclccnt. Notable 2017 changes in revenLte by regiotl and procltrct type
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arc as fbllorvs: apparcl sales Llp 1,5 percent in Western Ilurope; fbotwear and apparel sales each tlp l3 percent (lhina and l7 and 2l ltcrcent rcspectively in.lapan; lootwear sales up ll percent in ernerging tnarkets. Tlte largestloseronapercenlagebasisrvasecluil-rnrerttsalesinNorthAtnerica,thatwereclown l0percentin20lT this division a0r0ss all ttatiotts 00lttinu0s t0 :itruggle lbr Nike ,
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l;rirrlrit (r reveals Nike (not inclucling ('onvclse) revenues t'ry customcrtype: wholcsale cttstotncrs accottnt for72 pcrccnt ol'2017 revcnucs. Wholcsalc crrstonrcrs include Foot Locker, Dick Sporting (]oocls, ancl otlter nlcrchants
that purchase ancl sell Nike 1'rroclucts, while direct-to-ct)nsulner irtclttdes Nike storcs allcl online sales.
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Nikc llcvcnucs by Customcr'l'ypc
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6/2612020 Competitors
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Nike is the largest seller of athletic footwear, aPParel, and equipment in
the world, bttt there are aggressive rival firms, including Adidas, Under
Armottr, New Balance, and Pttma, along with a few others in the
production of athletic gear. ln addition, as a forward integrated company,
Nike competes with retail stores such as Foot Locker and other shoe
retailers who ironically also sell Nike products. Nike represents nearly 50
percent of tl-re whole atl-rlc-tic sportswear indtrstry based on market
capitalization on U.S. stock n-rarkets, followed by V.F. Corp at74 percent.
u.s. based Under Armour only represents 2.5 of the industry.
lixhibit 7ru gives a quick glimpse at Nike compared to two rival firms.
Note that Nike is far larger than Under Armour and Adidas combined.
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# Employees
$ Revenue
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54.48
55,414
24,113M
49%
$ Net lncome 4,240M 257M 1,271M
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$ EPS Ratio 2.31 0.32 4.25
$ PZr Ratio 28.34 38.34
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Headquartereci in Herzogenallrach, Germany, Adidas was founded in
7g4g and operates over 2,BOO stores. Adidas owns Reebok, TaylorMade'
and ccM Hockey proclr-rcts. Adidas reported $s+ blllion usD in 2016
with net income of 1.3 billion. Adidas is the largest sportswear
manufacturer in E,urope ar-rd the second largest in the world, behind Nike'
In 2015, professional basketball player James Harden left Nike for Adidas'
reportedly signing a 13-year contract worth $200 million. Adidas's
strategic plan is very sirnilar to Nike's; both companies use product
development followed by heavy marketing, signing teams and players
across almost all sports to market and promote their products'
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Headquartered in New York City, Foot Locker's stock price soared
between 2072 ancl 2017 increasing around 300 percent despite revenues
only increasing 15 percent, and operating income declining 12 percent
over the same time peri<td. Founded in 7879, the company operates
nearly 3,500 stores and ernploys 15,000 full time workers across the
United States, Europe, Ar-rstralia, New Zealand, and Canada' However 80
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6/2612020 Competitors
percent of corr-rpany sales come from the U.S. Also, 70 percent of Foot
Locker's inventory for sale is Nike merchandise.
Foot Locker usc.s the store-in-a-store concept used by marry retailers
where they l-rave 217 House of Hoops shops offering premium basketball
products. Foot Locker also offers Lady Foot Locker, Cl'ramps Sports,
Footaction, Rttnners Point, Siclestep, and Kid's Foot Locker stores. Foot
Locker se1ls Nike proc{trcts along with other brands. With Nike's forward
integratirtr-r strategy <tf opening their own retail stores and selling online,
they directly compete witl'r Foot Locker and all other merchants that sell
Nike products at the rctail level. There are 62 franchised Foot Locker
stores in tl'rc Middle East and South Korea, as well as 15 franchised
Runners Point stores in Cerurany.
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Headquartered in Baltimore, Maryland, Under Armour (UA) was founded
in7996 by a former University of Maryland football player who desired a
t-shirt tl-rat wor-rlcl whisk away perspiration rather than get soggy wet. The
company l-ras grown to be one of the most sought after brands among
athletes around tl're world, being worn by some of the largest American
college football and Er-rropean soccer teams. Colleges such as the
Maryland Terrapins, Altbltrn Tigers, Sor-rtl-r Carolina Gamecocks, and
many more have contracts with UA to outfit their teatns. English soccer
team Tottenl-ram Hotspttr, Greek tearn Aris F.C. and Mexican club
Deportivo Toluca F.C. all are outfitted by UA. Mega stars such as Tom
Brady, Cam Newton, Bryce Harper, Michael Phelps, and many more, all
sponsor and t-narket UA products currently or at one time.
Under Armour was one of the pioneers to produce the compression and
performance workout gear and in 2077 introduced bioceramic materials
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6/26/2020 Competitors
in their sleepwear line of clothing that is supposed to reduce
inflanrmation. The firm reported revenues of $4.8 billion in2076 up from
3.9 billion in 2015. However, the firm's stock price dropped 75 percent
from the high in 2015 to the low in 2077. Under Armottr is well known
for its partnership with PGA golfer Jordan Spieth, who recently launched
his own golf shoe, "spietl'r One." The company is also widely known for
its partnership with NBA star Stephen Curry, who is considered to be the
"face of Under Arrnottr's footwear line." Just like Nike and Adidas, Under
Armour's strategy is to pursue product developn-rent and follow up with
hear,y marketing.
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,'\ tltl *li t: th;, t: lil t v { t' :,, 'l'hc athletic shoe storc incltrstry in thc Unitccl Statcs generates over $15 billion in revenue, annually, r.l,ith growtlt rrrouncl 3 percent expectcd throLrgh 2022.
-['hc inclustry is fiagrnented with ovcr 3,000 businesses, rnany srnall
nrorn-and-pops, with thc tri,o top playcrs, Iioot I-ockcr ancl Nike, accounting lor 32 and l8 perccnt o1'sales, lcspcctively. Unlike ntany rctail outlcts, thc industry is healthy and growing sincc tnorc and rrore consurners r,r,orlclwide are beconrirlg nrore hcalth conscious. ln addition, a growing trencl ref-en'ed to as athleisure grew over 40 pcrcent betrvcclt 2009 and 20l(r, whcrc c()nsunre rs irre increasingly wearing athletic apparel in every day scttings, including at r,l,ork. Many r,r,,ork crrvirorrnrents are calling workers back to the ol-llce and rccluirirtg increasecl levels of dress ctxle, so it renrains ttl be seen rf the athlcisure industry can contirtuu'to gt'ou, at suclt a rapicl pace .
C)nline athletic shoe nterclrants are also grou'ing, and, as athlctic apparel becomes morc popular, cleparttnent stores that tencl to oll'er busincss carsual clothing are increasing their athletic shoe storc spaces. In contrast tt'r ntost clothing categolics u,hcre \\,on)cr) arc thc prirnary cllstonrers, men account lbr nearly 60 perccnl ol'athletic shoe sales, with wornen ancl chilclren both arouncl 20 percent. The industry enjoys a fairly even distribution of sales voluntes lronr vurying irgc gl'or.ll)s. Lrtrt custor-ners unclcr age 55 itccor.rr.tt lbr aboLrt 75 percent ol-sales.
'Ihe total lbotrvear nrarkct in the Unitc-cl Statcs is rvorth $65 billion, but tlre fastest growing scgrnent of this industry is athletic lbotlvcar. Clhina supplics ovcr 70 percent of all shoes sold in the U.S.
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Athlctic and sporting goocls inclustry accoLrnts fur over $8 billion in tJ.S. r'evenue, attnually, but experienced a ncgative growth ratc arouncl 3 pcrccnt bctu,cen 2010 ancl 2011. Moving lbrward, thc growth rate is expcctecl to inrprcve to upwarcls ol I pcrccnl througlr 2022. The rttain driver of revcnuc is golf'-relatecl ecluiptrent, accorrnling lor nearly 50 pcrcent o[-inclrrstry revenues, fbllowed by playgrouncl eclLripnrettt, and lishing tackle and equipment aronnd T perccnt each. Other types of sports equipment tnake up tlte rentaining 3(r percent. Irootball, soccer, baskctball ancl othcr proclucts attribute little to ovcrall industry rcvenucs, but this is not totally surprising consiclering-jr"rst how ecluipnrcnt-intensivc sports like golf ancl fishing can be. Apparel antl shocs are not considcred in thc inclrrstry. Nikc colrtrols arouncl 9 pcrccnt of thc industry rcvertLles in tltc U.S., rvith rival flrn-r Calloway Golf ownins -5 percenl.
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ln 1996, Under Arntour sturtecl ol)'ering et,rnlllcssiorr apparel that helped to rcgulate body teruperaturc ancl kee;r atltletes wilnlt in thc colcl ancl cool in the hcat. Toclay, llrnrs are beconring rrore aclvancecl by aclcling oottlpllter tcchnology to tlieir prodrrcts. Many finrs urc norv cxperirnenting with t-shirts macle o1'concluctive yards that can cveu transutit hcart ratc anclother data rlirectly to the Llscr's cloctor. A spinoff ol'Satnsutrg, IOFIT is a sports- srnart shoe wherc goll'ers havc thcir s'uvings and balancc analyzecl. In 2017, Chinese-based Xiaorni released a snllrt nutning shoe with a chip 1-rowercrl by Intcl. Google ancl Levi have partnered to procluce a slttart jacket worrr by cyclists. The athlctic s1-ror1srvear industry is getting morc technical every clay.
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Ipvcptory turnovcr ratios l)ave bccn declining lor the past l0 ycars in the athletic sportswear incltrstry. lt't2006, (itr cxample, the inventor'),tul'n()\'er nrtio lirr thc industry was 4.0, btrt in 2017 tlte ratio has steaclily dropped to
1.0. Nike is cloing lretter than its peers on this ratio. reporting an itrvelttory tttrnover ratio of 3.li in 2017. Many
analysts suggest the clrop is sirnply liorn llrrns ovcr'gstirnating their invcntory ncecls and by weakcr custorner
tral'lrc. Footrvear accor-rnts lirr Iess o1'thc rlrcp in inventory turnover than apparel. Rctailers arc itlclillccl to have
clsrrgh pr6clucts to lneet clcrr-tancl as hot licket itcrns attract peoplc into stores. Tlius, a clttestion ariscs regartling
whether having a Itigh invcntory lunrover ratio is wortlt possibly rurtnirtg out of hot ticket iterlts that flnns
ccr.tainly lose salcs on, but llso risk losing salcs on impulsc purchases by custtltncrs ctlt"uit-tg inttl the store. I l1vr6g exce ss iuveltgry, lrowe vcr, trairrs e Llstonrcrs to wait lbr the cleetraltce sales, ultitl'tately htrrting reventles
ancl ;rrollts. Inventoly ntiurirgclrcrrt is u stratcgic isstre lacing all retain llnns inclucling Nike.
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Sor-pc expcrts in the altltarcl llclcl arc cltrbbing customers today as being "brand polyganlist" relerritlg to
custsrlci decrease i1 brap{ loyatty ovcr the last decade. Custorners al'c now purchasing irtcreasingly based otl
ltricc or extra proclLrct lcatLrres nrther tltan sinrply buying lbr the stattts ol'a logo or braltd llillre. The trctld has cut int6 gross rnargins ancl incrcasecl lrvalry rvithin the athletic sportswear industry. It also allows newcr start Ltll
[lrnrs a larger chalcc 1s cLlstonrcls alc incrcasingly willing to look at all optiorts closer. Nike, lor exat-nple, tlo\v has a NikclD prograrn r,vherc thcy allow sholtpels to clesign their orvn sltoes, apparel, bags, attcl otltcl itt'ttts
oplile in an aiteniltt to attract lrore crrstontcls through personalization. Ilor.vcver, scltenres such as this are cx1-repsivc, an6 firins like Nike are olicn no1 able to charge signilicantly lnorc to otfset the extra costs of say,
priclucing 100,000 ot-the sanre lrlLre shirts. I)o not nristake tlie valr-te ol'briinds sltclt as Nike, Adidas, Uttder
Arl-rour and others; they lcntain a ltorvcrlirl lilrcc in thc industry, but sintply having cttsttltttcrs tt> purchase basecl gtr a logo alone is beconting cxtiucl its crrslotners bcconle t-tlore Interttet savvy.
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'l'hcre is increased ntontcnttun in tlic athlctic sportsrvear industry Ior clirect-to-collstlnler salcs tltroLtgh fitctory
shg1-ls, thus using the Intcrnct to lryltass trarlrtional retailing nrerchants. An advatttitge to lnternet sales othertltan
clttilg oLrt a rnidcllcrnan is that Ilnrs can clesign cLrstorrer products as Nike docs rvith NikelD. In total, e- conrrcrce salcs as a u,lurlc, including irll inrlustrics, grew l5 percent in 2016 verstts the less tltan 3 percent growth for retail salcs ovcr the satl"tc tin-ic pcrltlcl.
Using the direct-to-coltslrntcr busincss ntoclcl. l-rrrtrs arc also able to collcct accurate clala otl ct'tstotner's habits
who plrchase versss don't pLrrchase and tailor advertising and rnarketing strategies ttt custtltners baseclon their
likeli|ooclto purchase or not purchasc. lror exanrple, proliles are dcveloped fbr custonters rvho are rtot likely to plrchsse witlioLrt il coLrl)o1l \rerslrs cLrstorrrcrs who will likcly purchase cithcr rvay; in addition, 1;rofiles tnay be clcvelopcd to clctenrincrvhat lengtlr ol'tinrc alicr a purchase do you need to ofl-er an itlcentive to attract the
custorncr to plrchasing again. 'l'lie inlirrnrirtion garnerecl fiorn having a robttst direct-to-collsulller sales trledittttl
is arguably priceless.
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Acc6rcling to Global InclLrstly Analysts, Inc., tlrc global Ilarket fbr Sports ancl Fitness Clothing is projected to rcach $231.7 billion by 2024. Morc ancl nrorc pcople are living healthier lile styles ancl participatiort itt sports lncl fitness activities is growing. I.his is grcat ncws ftlr Nikc. lhe rcsearclt reveals that sportswear is tLttning intt) a highly popular style statenrent antl lirslrion trencl. Adclitionally, the report points ottt that thc Asia-Pacillc rcgion is expccted to bc thc lirstest glowing t'egiott.
Mlrkct rescarch firm lrgrontonitor lntcrnutional reports that sales olsportswear, which includes itetrs such ets yoga pants atrcl activcrvcar, is grorving lirstcr tltatr atty other apparel or lbotivear category. Specilically, both s1-rgrts-inspirecl fbotwear anil apparcl is gnrwing at about l0 percent and 6 percent annually. I{egarclirtg the growth of sportswear apparcl and fbotu,clr ircl'oss regions, enterging tnarkets srtclt as Itrdra and Thailancl are glrrving fastest, but cvcrr curc nrarkcls such as thc Uniteil States are also producing signilicant sptllts-inspircd grolvth.
A I'clv new firnts that Nike is nronitoring in tlrc sportsrvcar inclustry incltrdc RYU Apparel, Inc. (TSX: RYU.V) llrat procluces urban athletic altltarcl. l:oLrndccl in 2005, RYU's trnancial results for the (r nrontlts ended.lune 30,
l0lTinclucleclrevenLrcsinthcscconclcluartcrol'20l7ol-$64l,23l,ll3percenthigherthanrcvetlueol$300,773 clLrring the sarne ltcriocl in 201(r. ItYtJ conlinues to show a balanced ratio of apparel sales between tllen ancl
*o,-,-1.,1 at 46 perccnt ancl -5.1 lterccnt, r'cspcctive ly. Ily reaching an undet'served gap in the itrcltrstry lbr nlen, altcl cleveloping thc Beautilirl 'l'ough brantl positionirrg that's resonating with wonten, I{YU currerttly clerives l7 percent o['revcnue ft'onr e-conmrercc rvitlt a target ol'reachittg 30 perccrlt by the erld ol'2018.
Nikc is also rnonitoring LulLrlenton Athlctica, Inc. (NASDAQ: LULU), an athletic apparcl corrpar)y fbr yoga,
r.unning, ancl tlaining. LLrlLr crcatcs lranslirrnrational experiences fbr people to live happy, hcalthy, litrr lives.
Scepringly new companics ansc all acruss thc globe each nrontlt, clesiring a piecc o1'Nrkc's tllarket sharc, stl
Nike nceds a clear stratcgic 1'llatl tllovillg ftlnvartl.
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